Washington State Department of Financial Institutions

Mortgage Broker Examination FAQs

Answers to common questions about examinations conducted by DFI.

How do I disclose the Yield Spread Premium on the Good Faith Estimate?

Spell out the words “Yield Spread Premium”, place it in the 800 series section, and disclose the yield spread premium as a dollar amount or dollar range.

Can I charge or collect Discount Points when I broker a Conventional or FHA loans?

No. The Mortgage Broker Practices Act (MBPA) prohibits the charging of discount points when it is payable to any party that is not the actual lender on the residential mortgage loan.

How long must I keep my books and records?

Accurate and current books and records shall be readily available to the Department at least twenty-five months following the effective period to which the books and records relate.

What are the characteristics of occupancy fraud?

Occupancy fraud typically involves two or more overlapping applications for separate owner-occupied properties. In addition, occupancy fraud may also include some of these other characteristics:

What will DFI do if it discovers occupancy fraud during an examination?

Evidence of occupancy fraud is referred to our Enforcement Unit for a possible enforcement action.

RCW 19.146.0201(1)
(1) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person;